U.S. Spot Bitcoin ETFs Face Outflows After Inflow Streak

Spot Bitcoin exchange-traded funds (ETFs) in the United States have seen a reversal in daily flows, ending a seven-day streak of net inflows.

According to data from SoSoValue, the 12 spot Bitcoin ETFs collectively recorded outflows of $79.09 million, primarily driven by significant withdrawals from Ark and 21Shares’ ARKB fund, which lost $134.74 million.

Despite the overall negative trend, some funds managed to attract inflows.

BlackRock’s IBIT Attracts Notable Inflows

BlackRock’s IBIT, the largest spot Bitcoin ETF by net assets, garnered $42.98 million in net inflows. Fidelity’s FBTC fund also saw positive flows of $8.85 million, while VanEck’s HODL added $3.82 million.

However, eight other funds, including Grayscale’s GBTC, reported no changes in their net flows for the day. The $79 million in net outflows reduced the cumulative net inflows for all 12 spot Bitcoin ETFs to $21.15 billion.

Trading Activity Declines

On Tuesday, the total daily trading volume for these ETFs decreased to $1.4 billion, down from $1.76 billion the previous day. This decline in outflows followed a week where spot Bitcoin ETFs attracted over $2.67 billion, with BlackRock’s IBIT alone pulling in $1.5 billion during that period.

These inflows coincided with a rally in Bitcoin’s price, which surged above $69,400 on Monday.

Ether ETFs Report Positive Inflows

In contrast, U.S. spot Ether ETFs reported net inflows of $11.94 million on Tuesday, driven solely by BlackRock’s ETHA fund. Despite these inflows, Ether’s price fell by 0.99% to $2,611, while Bitcoin decreased by 0.38%, trading at $67,038, according to The Block’s data.

Last week, the broader digital asset investment market showed renewed optimism, with $2.2 billion in inflows, marking the largest increase since July. This uptick in investor sentiment is attributed to expectations of a Republican victory in the upcoming U.S. elections, which could be perceived as more favorable for digital assets.

Bitcoin Futures Open Interest Reaches New Heights

Bitcoin derivatives have seen a significant rise, with open interest (OI) in Bitcoin futures hitting an all-time high of $40.5 billion on October 21. Data indicates that the Chicago Mercantile Exchange (CME) holds the largest share of Bitcoin futures open interest at 30.7%, followed by Binance at 20.4% and Bybit at 15%.

The increase in open interest aligns with Bitcoin’s price nearing the $70,000 mark. Open interest reflects the total value or number of outstanding futures contracts that have not yet expired, serving as a key indicator of market activity and investor engagement in Bitcoin derivatives. A rise in OI can signal increased leverage in the system, potentially leading to greater market volatility. Periods of high open interest can result in significant market movements, especially when prices shift sharply.